The consortium of seven Indonesian independent tin smelters expects to be operating at less than half capacity from June through the next quarter, as rising ore prices squeeze margins, a spokesman told Metal Bulletin. Bangka Belitung Timah Sejahtera (BBTS) expects June-September output to fall further to below 50% of its 3,000-4,000 tpm capacity despite rising tin prices. Production was around 2,000 tonnes in May, said BBTS director Patris Lumumba. Already, three out of seven smelters in the consortium – Prima Timah Utama, United Smelting, and Duta Putra Bangka – have stopped production due to rising costs. BBTS is paying its miners about 105,000 rupiah (or $10) per kg of tin ore, up from about 75,000 rupiah in April, Lumumba said.
The shortage of ore was attributed to water shortages faced by small-scale onshore miners. However PT Koba Tin has said that it does not expect its production to fall below its target of 750 tpm. “Koba Tin has own water supply for onshore production during the hot and dry season,” said spokesman Dharmansyah Nawawi.
